FCA spending $400M in Indiana on engines
FCA Head of Engine and Transmission Manufacturing Brad Clark (left to right), joined by FCA North America COO Mark Stewart, Indiana Gov. Eric Holcomb, Kokomo Mayor Tyler Moore, UAW Vice President Cindy Estrada, and UAW Director Rich Rankin, announces the name of the new engine plant in Kokomo., Indiana.

FCA spending $400M in Indiana on engines

Converting idle transmission plants will create U.S. source for turbocharged 4-cylinder engines.


Kokomo, Indiana – Fiat Chrysler Automobiles (FCA) will invest $400 million to repurpose an idled transmission plant in Kokomo, Indiana, to build the GMET4 engine – the company’s 2.0L, turbocharged, inline 4-cylinder available on the Jeep Wrangler and Cherokee.

With this investment, 1,000 Indiana jobs will be retained with nearly 200 new jobs added to support production, bringing total employment in the state to more than 8,300.

FCA North America COO Mark Stewart said, “The GMET4 will be a very important engine for us as we look to deliver on the promises we made as part of our five-year plan in 2018… A significant number of new technologies can be applied to this engine, making it relevant for the future.”

The new facility will be the source of all U.S. production for the engine currently built in Termoli, Italy. Production is expected to begin in Q2 2021.

For more than eight decades, FCA has built transmissions in Indiana, more than 90 million since record keeping began in 1974. Since 2009, the Company has invested nearly $2 billion in its four area plants to produce the eight- and nine-speed transmissions. When production of the GMET4 launches, it will mark the first time in the company’s history that it has built engines in the state.

Construction of Indiana Transmission Plant II (ITPII), which will be renamed Kokomo Engine Plant, began in 2002 and launched production of five-speed transmissions in November 2003. The plant also produced components for eight-speed transmissions. ITPII built its last five-speed transmission in August 2018 and was idled in the fall of 2019.

FCA currently operates three transmission plants and one casting plant in Indiana. The portfolio of transmissions includes four-, six-, eight- and nine-speed transmissions, as well as the SiEVT transmission for the Chrysler Pacifica plug-in hybrid electric minivan, built at the Windsor Assembly Plant in Ontario, Canada. The casting plant produces aluminum parts for automotive components, transmission and transaxle cases, and engine block castings.